Jubilant FoodWorks (JUBLFOOD) Q4 19/20 earnings summary

Executive summary

• FY20 delivered double-digit revenue growth despite dairy-cost inflation, weaker external demand and the COVID-19 disruption in Q4; EBITDA was 22.6% of revenue on a reported basis.

• Opened 130 restaurants across brands; Domino’s India LFL sales grew 4.5%, while online ordering reached 86% of delivery sales.

Financial highlights

• Consolidated revenue from operations was ₹392,727.40 lakh, up 10.70% YoY; EBITDA was ₹87,559.27 lakh and net profit was ₹27,879.89 lakh versus ₹31,798.04 lakh.

• Standalone revenue from operations was ₹388,577.65 lakh, up 10.06% YoY; EBITDA was ₹87,708.31 lakh, up 44.31%, with Ind AS 116 affecting comparability.

• Standalone PBT fell 20.42% to ₹39,350.36 lakh and net profit fell 14.67% to ₹27,545.19 lakh; EPS was ₹20.87 versus ₹24.46.

• Consolidated EPS was ₹21.22 versus ₹24.23; FY20 earnings included exceptional charges and a one-time deferred-tax remeasurement charge.

Outlook and guidance

• Management expected growth to recover in the near term as restrictions eased, citing trusted brands, delivery capabilities and the long-term QSR opportunity.

• Long-term priorities included scaling Hong’s Kitchen and Bangladesh operations, evaluating Dunkin’s smaller format, and pursuing cost optimisation and operating leverage.

• Domino’s India embarked on a 20-minute delivery ambition, moving from its 30-minute benchmark; management also planned continued restaurant expansion and digital investment.